X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Asian Paints: Prolonged Monsoon Impacts Volume - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Asian Paints: Prolonged Monsoon Impacts Volume
Oct 28, 2016

Asian Paints has announced the second quarter results of financial year 2016-2017(2QFY17). The company has reported a 10.2% YoY rise in the topline while the bottomline has grown by 18% YoY.

Performance summary:
  • Sales from operations grew by 10.2% YoY during 2QFY17 and the other operating income grew by 5.5% YoY leading to increasing total income to 10.2% YoY during 2QFY17. The Decorative Business segment recorded a low double-digit volume growth in the current quarter. However, a prolonged monsoon did affect demand in the west and central India. Good demand conditions in the auto OEM and general Industrial business segment led to improved performance of the automotive coating JV (PPG-AP). The International business reported good numbers specifically aided by the contribution from good pick-up in demand in Nepal, Fiji and certain units of the Middle-east. Similarly, the kitchen business (Sleek) and bath business (ESS ESS) in the home improvement category registered good growth in the current quarter.
  • Operating profit (EBITDA) in 2QFY17 increased by 17.3% YoY on the back of falling input cost despite an increase in employee cost which has increased by 15.5% YoY. Operating Margin increased by 1% to 16.8%.
  • Other income increased during this quarter by 25.9% YoY.
  • Net profit increased by 17.9% YoY on the back of despite of increase in operating profit, growth in other income which was partly offset by an increase in depreciation, tax outgo.
  • The company has declared an interim dividend of Rs 2.65 per share.

    Consolidated financial snapshot
    (Rs m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Total Income from operations 38,397 42,325 10.2% 75,427 83,145 10.2%
    Total Expenses 32,317 35,195 8.9% 62,561 67,813 8.4%
    Operating Profit (EBITDA) 6,080 7,130 17.3% 12,866 15,332 19.2%
    Operating Profit Margin(%) 15.8% 16.8% 17.1% 18.4%
    Depreciation 677 844 24.6% 1,340 1,698 26.7%
    Finance Cost 92 60 -34.5% 182 124 -31.7%
    Other Income 629 791 25.9% 1,238 1,510 22.0%
    Profit before tax 5,940 7,017 18.1% 12,583 15,020 19.4%
    Exceptional Items
    Tax 1,843 2,207 19.7% 3,891 4,810 23.6%
    Minority Interest 152 188 24.1% 279 363 30.3%
    Share of Associates 92 138 161 263 63.8%
    Profit after tax 4,037 4,759 17.9% 8,574 10,110 17.9%
    PAT Margin 10.5% 11.2%
    No. of shares (m) 959.2
    Basic diluted earnings per share (Rs) ^ 19.6
    P/E ratio (x) * 55.3

    *Based on trailing 12 month earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ASIAN PAINTS SHARE PRICE


Dec 15, 2017 01:51 PM

TRACK ASIAN PAINTS

  • Track your investment in ASIAN PAINTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

ASIAN PAINTS 8-QTR ANALYSIS

COMPARE ASIAN PAINTS WITH

MARKET STATS